VC & Co. To Hold Information Meeting For Economical Mutual Policyholders Tonight at 7:00 p.m. in Waterloo

Court Orders Economical to Mail VC & Co. Materials to Mutual Policyholders

TORONTO, May 3 /CNW/ - VC & Co. Advisory Limited, which is advising the more than 100 mutual policyholders of Economical Mutual Insurance Company seeking to replace its current board of directors, is hosting an information meeting for mutual policyholders tonight in Waterloo regarding the important initiative for change that is underway at Economical. The information meeting will be an opportunity for mutual policyholders to hear more about the compelling reasons to elect a new board at the May 26, 2011 policyholders' meeting. Mutual policyholders will also have an opportunity to ask questions about the Policyholder Proposals initiative and to meet some of the new proposed directors of Economical. The information session will take place at 7:00 p.m. in The Regent Room at the Waterloo Inn Conference Hotel, 475 King Street North, Waterloo.

Contrary to statements made by the current board, mutual policyholders will not be required to register and divulge personal contact information to attend the information meeting. Unlike the current board, VC&Co. has not hired a third-party proxy solicitation firm to repeatedly telephone mutual policyholders at home to obtain their proxies, and will not do so.

"The information meeting will give mutual policyholders an opportunity to meet some of the Policyholder Nominees and to hear first-hand about the Policyholder Proposals initiative," said Michael D. Woollcombe, Executive Vice-President of VC & Co. Advisory Limited and one of the Policyholder Nominees. "This initiative is about unlocking and delivering value to mutual policyholders and making a better Economical for all stakeholders. We look forward to an engaging discussion and an opportunity to address questions from mutual policyholders."

Court Orders Mailing of Written Communications to Mutual Policyholders

VC&Co. also announced that Economical has been ordered by the Ontario Superior Court of Justice to cause the distribution of additional written communications to all mutual policyholders on behalf of VC&Co. VC&Co. was forced bring a Court application after Economical's current board refused to mail additional communications to mutual policyholders beyond its dissident circular.

The refusal was part of the current board's strategy to prevent mutual policyholders from obtaining information needed to make an informed decision about the current board's leadership. In an endorsement, which was issued yesterday, Justice H.J. Wilton-Siegel stated:

              "… there is the potential for real prejudice to the policyholders if the order were not granted. Economical has failed to provide a valid justification for preventing policyholders from receiving written communications that the dissident shareholder group considers relevant to the exercise of policyholder votes. … It would also effectively allow Economical to send out further communications without risk of contradictions by the Dissidents. Ultimately, this is to the prejudice of the policyholders, who must be presumed to be capable of making their own decisions with respect to the issue before them…"

Following the release of the decision, VC&Co. sent a letter to all mutual policyholders reiterating the need to support the election of a new board at the May 26, 2011 policyholders' meeting. In its letter, VC&Co. states: "Having consistently failed you in the past, there is simply too much at stake to leave the current board in place to fail you again. You deserve much better as an owner of Economical."

In addition to describing how a new board will accelerate the delivery of value to mutual policyholders and make a better Economical for all stakeholders, VC&Co.'s letter exposes a number of misleading statements that have been made by the current board. The full text of this letter is available at www.concernedeconomical.com.

Vote only the YELLOW proxy

Mutual policyholders are encouraged to complete and return only their YELLOW proxy. YELLOW proxies must be returned by May 13, 2011 in order to be deposited in time to be used at the upcoming meeting. Mutual policyholders with questions or who require assistance in completing and returning the YELLOW proxy should telephone either Michael D. Woollcombe or Shane A. Priemer of VC & Co. Advisory Limited at 416-864-2274.

SOURCE VC

For further information:

Michael D. Woollcombe
Executive Vice-President, VC & Co. Advisory Limited
416-947-1700
mwoollcombe@voorco.com

Media contact:

Alan Bayless, Client Partner
Longview Communications Inc.
604-694-6035
abayless@longviewcomms.ca

www.concernedeconomical.com

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VC & Co. Advisory Limited

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